The Finance Act 2011

Introduction
Proposed text
Before Parliament
Publication in OJ
Implementing Provisions
Implementation
The Finance Act for 2011 which has the main objective of redressing the balance of the state budget (which would increase from -152 000 000 000 euros in 2010 to -92000000000 euros in 2011) relies on increasing the growth rate for 2010 to 1.5%, and its goal to reduce the deficit to 6% in 2011 . For next year, hopes Bercy a 2% growth and the creation of more than 160,000 jobs merchants.

The fiscal consolidation will mean for the state, by stabilizing credit value of the debt-load and off-pension spending and the continued non-replacement of a staff of two retiring. The text also operates an important ” movement of the plane “on many tax loopholes .

The main lines of the text are:

the deficit reduction and spending :
First of all, Bercy intends to continue reducing the deficit with a reduction target of 6% in 2011, and to limit operating expenses of the state. The main objective of the Finance Act is to minimize non-essential expenses without hampering economic recovery and investment under the stimulus of the economy.

ensure the second part of the reform of the CET :
The text provides a device for adjusting the reform of the economic contribution of land (CET), following the removal of business tax from 1 January 2010.

make a significant reduction of niches :
The Government intends to put an end to several benefits and “plane” 10% other (eg discounts, rebates, tax credits, etc..) granted to individuals or professional exchanges investments, acquisitions or expenses in specific areas and under conditions.

establishment of a new device to help access to housing :
A new device is set up to help households buy a home. As of 2011, interest on a loan for the purchase of a first principal residence will no longer be partially deducted from the income tax. Instead, Christine Lagarde has announced the redesign of the existing loan (PTZ) was to become ” universal . ” It will indeed be granted ” without means “and regardless of the location of housing acquired, and will be reserved for first-time buyers.